P11D & P11D(b) forms

A P11D form is a tax form used by employers in the United Kingdom to report benefits in kind and expense payments made to employees that are not processed through the payroll. This includes items such as company cars, private healthcare, and interest-free loans.

Employers must complete a separate P11D form for each employee who has received taxable benefits or expenses.

Employees should receive a copy of their P11D form from their employer. This form will be used by the employee to calculate the amount of tax they owe on their benefits.

What benefits/expenses are included on a P11D form?

Here are some of the benefits that are typically reported on a P11D form:

• Company cars
• Private healthcare
• Interest-free loans
• Accommodation
• Non-cash payments (such as vouchers or gift cards)

Company cars

If an employee has a company car which is used for private use, the employee will have to pay a Benefit-in-kind tax.

The amount of tax payable depends on the CO2 emissions of the car and its P11D value. The P11D value is the list price of the car, including extras and VAT, but without the first-year registration fee and vehicle tax.

The Benefit-in-kind bands for company cars in 2023 are as follows:

0-50g/km: 0%

51-75g/km: 12%

76-90g/km: 20%

91-120g/km: 32%

121-150g/km: 37%

151-175g/km: 45%

176g/km or above: 50%

Benefit-in-kind tax is payable on the first day of the month in which the company car is used for private use.

Deadlines

P11D & P11D(b) forms must be filed by 6th July following the end of the tax year (i.e. 6th July 2023 for the 2022/23 tax year).

Late P11D forms attract penalties of £100 for every 50 employees per month. The resulting Class 1A NIC must be paid by 19th July, with interest charged on any late payments.

Should you require any help or further information, please do not hesitate to contact your local Perrys branch.